Japan's drugmaker Eisai is moving to expand production and packaging facilities for the Alzheimer's treatment Leqembi (ingredient name lecanemab) with subsidies from the U.K. government's manufacturing promotion program.
According to industry sources on the 21st, Eisai plans to invest about £48 million (about 97.3 billion won) in its plant in Hatfield, Hertfordshire, north of London, to expand production facilities.
The investment is being pushed forward with support from the Life Sciences Innovative Manufacturing Fund (LSIMF), launched by the U.K. government in 2024.
However, Eisai did not disclose the specific size of the support. The company said the LSIMF subsidies made the investment possible.
Once the expansion is completed, the Hatfield plant will be equipped with packaging and supply capabilities for medicines that require cold-chain distribution. Production and packaging capacity for temperature-controlled injectables and intravenous (IV) medicines, including Leqembi, will be strengthened.
Eisai plans to shift some packaging work currently outsourced to contract manufacturing organizations (CMOs) to its own facilities in the U.K. to increase supply chain control.
Construction will proceed in stages. The company will build new ambient and refrigerated warehouses, install a dedicated packaging building and packaging lines, and expand product in-and-out facilities.
Eisai also expects the investment to strengthen its role as a supply hub for Europe, the Middle East and Africa (EMEA).
Eisai Chief Executive Officer Haruo Naito said it is a strategic investment to strengthen stable supply capabilities for innovative medicines and pipeline products in development, adding that it will further solidify the company's long-standing partnership with the U.K.
The investment comes as the U.K. government has recently been focusing on attracting life sciences manufacturing. The LSIMF is a program that supports investments not only in pharmaceuticals but also in diagnostic and medical device production facilities, and the U.K. government plans to inject a total of £520 million (about 1.05 trillion won).
The U.K. faced concerns last year about a pullback in investment by the pharmaceutical industry. As complaints grew over drug price controls and an uncertain industrial environment, some global drugmakers reconsidered or put investment plans on hold.
But the U.K. government has recently revised a drug pricing scheme that required returning a portion of new drug sales to the National Health Service (NHS), moving to attract investment from global drugmakers.
Leqembi was approved in the U.K. in 2024 as a treatment for patients with early Alzheimer's disease. In November of the same year, an intravenous administration route for maintenance therapy was also approved.
However, the NHS does not cover the drug price in the U.K. at present, so patients must pay the full cost of treatment, meaning actual prescriptions are limited. The National Institute for Health and Care Excellence (NICE) in 2024 said Leqembi's treatment effect was not large enough to justify its price and did not recommend NHS coverage.
This year, NICE accepted Eisai's appeal and is conducting a reappraisal of Leqembi and the rival drug Kisunla (ingredient name donanemab) from Eli Lilly and Company. The NICE appraisal committee plans to hold a meeting in July.